The Japanese Automobile Industry and Market Liberalization

Abstract

The automobile industry has developed the most fully-fledged international operations of all Japanese manufacturing sectors. Japanese automakers have actively strengthened local production in North America and Europe since the early 1980s. Corporate alliances with foreign auto-producers have also evolved from equity participation to joint ventures and joint vehicle development. This chapter examines whether major Japanese auto producers have supported marketopening policies in Japan as they have deepened multinational operations and corporate tie-ups. This question is addressed from two directions. One examines the transformation of keiretsu groupings in the automobile industry, and the other looks at the reactions of automakers to market-opening policies.